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business
•
revIew
august 1967
FEDERAL RESERVE
BANK Of DAL IL AS
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
contents
contrasts - the economy
through midyear ....... . . .. .... . . . .... . ... .
3
district highlights . . . . . . . . . . . . . . . . . . . . . . . . . .. 13
eontrasts-the economy
through midyea,The first half of 1967 was a period of adjustment for the Nation's economy and marked a
pause following the rapid expansion of 196566. Slower growth or declines occurred in
Spending, production, and employment; but the
levels of these measures of overall activity remained at or near the record highs reached
earlier. Efforts by businesses to reduce inventories from the undesirably high levels attained
in late 1966 represented a major factor in the
first-half slowdown.
In many respects, slowing of the economic
advance this year was a desirable change from
the overexpansionary and inflationary situation of 1965-66, when excessive spending,
pressures on resources, and price increases
were bearing down upon the economy and
threatening its future viability. As might be
eXpected, however, the pause in economic expansion created uncertainty and less favorable
eXpectations among consumer, business, and
other spending units, especially in the early
months of the year. Although consumers and
bUsinesses slowed the pace of their spending,
Outlays by government continued large and on
a ..
nstng trend . Federal spending for defense and
~ther purposes provided even greater stimulalOn than in the last half of 1966, and purchases of goods and services by state and local
~vernments showed a further large increase.
nder the stimulus of easier monetary policy,
~apid monetary expansion occurred during the
rst half of the year.
. At mid-1967, sluggishness in private spendLng and in total output continued, but levels of
Production and employment remained high. A
~unlber of factors suggest the existence of more
Uoyant expectations and the possibility of re-
newed expansion in spending later in the year.
Adjustment in business inventories - namely,
a slowing in the rate of accumulation - had
proceeded rapidly by midyear and may have
approached the point where it will cease to be
a dampening influence on spending and production. Moreover, as individuals moderated
the pace of their spending in the fourth quarter
of 1966 and in early 1967, they also added
heavily to their savings and liquid asset holdings, thus providing a solid base for possible
future increases in spending. Fiscal policy and
monetary policy were highly stimulative during the first half of 1967; and in view of the
generally accepted proposition that such stimuli
influence spending only after a lag, the major
impact of these policy measures may well be
in the offing.
Total spending measured in current dollars
- that is, gross national product, or the value
of all goods and services produced - increased
at an annual rate of 3.5 percent from the fourth
quarter of 1966 to the second quarter of 1967,
or less than one-half the average rate of gain
during the previous 2 years. Increases of $4.2
billion in the first quarter and $9.0 billion in
the second quarter raised GNP to the record
seasonally adjusted annual rate of $775.3 billion during the April-June period.
Most of the advance in spending during the
first 6 months, however, was reflected in price
increases, with the result that output and sales
expressed in physical terms ("real" GNP)
gained only 1.1 percent. This slower rate of
expansion in real GNP compares with annual
advances averaging about 6 percent in 1965
and 1966. Actually, real GNP showed a slight
decline in the first quarter of 1967 from the
business review/ august 1967
3
record level of the fourth quarter of 1966, the
first time in about 6 years this measure had
failed to increase, but the decline was more
than offset by the second-quarter expansion.
The sharply reduced pace at which businesses added to their inventories during the
first 6 months of this year was the principal
factor dampening growth in GNP. Under the
stimulus of general economic expansion - featuring expanding sales, high and rising rates of
utilization of physical capacity, price inflation,
and tighter monetary conditions - business inventories had advanced rapidly in 1965 and
1966. By the fourth quarter of 1966, business
inventory accumulation reached a seasonally
adjusted annual rate of $18.5 billion, a rate of
gain that was undesirably high in relation to
current and projected sales.
The weight of inventory accumulation was
especially marked among manufacturers, particularly producers of durable goods. Slowing
sales of consumer durables - including automobiles, kitchen white goods, and radio and
television sets - were a major factor in the enPRODUCTION AND INVENTORIES
(So.,onallyadJ"slod)
154
NES INVE TOR S
1965
1966
p.. Prellntlnary.
SOURCES; Board of GO\fornors. Fodoral Reserve Systom.
U.S. Department of Commerce.
1967
larged stocks of manufacturers. Goods ordered
for defense purposes and consisting mainly of
items in the process of production also contributed importantly to the growth of manufacturers' inventories (but not, of course, to the
problem of inventory adjustment). During
J anuary-J une, both factory output and neW
orders received by manufacturers declined. The
manufacturers' inventory-shipments ratio rose
to a high of 1.83 in April, as compared with
1.62 in April 1966; moreover, the average
ratio for the first 6 months was well above
that for any comparable period since 1961.
Because of slowing sales and the earlier rapid rate of inventory accumulation, businesseS
made sharp downward adjustments in the rate
at which they added to stocks in the first half
of 1967. The seasonally adjusted annual rate
of accumulation declined from $18.5 billion in
the last 3 months of 1966 to $7.1 billion in the
first quarter and $2.1 billion in the second quarter of the current year.
As might be expected, industrial production
responded quickly to the easing of sales and
the large inventory buildup. Production declined at an annual rate of 4.8 percent fron1
December 1966 (when the index of industrial
production was at the peak level of 159.0 percent of the 1957-59 base) to June 1967; hoWever, industrial output in June was still onlY
slightly below the relatively high level which
prevailed a year earlier. The decline in induStrial production this year contrasts sharply with
the 5-percent rate of advance from 1960 to
1964 and the accelerated 9-percent rate that
held from 1964 to 1966. The easing of production has been reflected principally in the decreased output of durables, especially iron and
steel, fabricated metal products, electrical machinery, and such consumer durables as automobiles, furniture, and television sets.
Growth in business fixed investment was
halted in the first half of 1967, and the reduCtion contributed to the slowing in total output
PLANT AND EQUIPMENT OUTLAYS
P· PrClllmlnary.
SOURCES: Sec uriti es and Ex chan ge Comm iss ion.
U.S . Dop arlrn ent of Commerco.
and spending. Business investment had ex~anded 16.4 percent in 1965 and 12.8 percent
lU 1966. In the first 6 months of 1967, however, such spending declined at the annual rate
of 3.6 percent from the level of the fourth
qUarter of last year.
remained relatively stable from mid-1966 to
mid-1967. In June of this year, the estimated
level of outlays was about the same as in 1965
but was well above the average of the early
sixties. During the first half of 1967, the rate
of spending for private nonfarm residential construction rose moderately, but expenditures for
commercial and industrial properties weakened.
New construction spending by Federal, state,
and local governments held at about the level
of the previous 6 months.
New private housing starts, which had fallen
sharply from December 1965 to October 1966,
rose noticeably late last year and continued to
show moderate, although encouraging, strength
during the first half of 1967. At 1.3 million
units in June, starts reached the highest level
recorded so far this year but remained well
below the average for other recent years prior
to 1966. The decline in mortgage rates in early
1967 and the expanded inflow of mortgage
funds to savings and loan associations and
other mortgage lending institutions were important factors leading to improvement in the
residential building situation.
. Although businesses spent large and increasIng amounts for plant and equipment during
the 1963-66 period - including outlays for
both modernization and expansion of facilities
- capacity utilization rates advanced under the
stimulus of rising demand and output. From
the first to the third quarters of 1966, the rate
of utilization of manufacturing capacity held at
a peak of 91 percent before declining to about
85 percent as production was cut back in 1967.
With operating rates declining late last year and
early this year, businesses made downward rev' .
IS10ns in current and future spending plans.
Nevertheless, business confidence has remained
strong, and recent restoration of the investment
tax credit and of accelerated depreciation represents an additional incentive for businesses to
Proceed with investment plans for new plant
and equipment.
Rising government expenditures for goods
and services provided strong support to the
economy during the January-June period and
represented a major factor in the moderate
growth of total' spending. The margin of increase in government purchases, equivalent to
a seasonally adjusted annual rate of increase
(GNP basis) of 16.7 percent, was slightly
greater than the overall dollar expansion of
gross national product. Total Federal Government spending for goods and services and
outlays for national defense advanced at annual
rates of 19.6 percent and 21.3 percent, respectively, while purchases by state and local
governments increased at the rate of 13.5
percent.
The rate of new construction expenditures,
wI'
s ~ch rose sharply from late 1964 to the
PrlUg of last year and then declined markedly,
The growth in national defense expenditures
during the first 6 months of 1967 represented
a continuation of the sharp advances in the
business review/august 1967
5
RETAIL SALES
annual rates of spending last year - 22.9 percent in the first half of 1966 and 24.7 percent
in the second half - and stemmed mainly
from the U.S. commitment in Viet-Nam. By
spring this year, troop strength in Viet-Nam
totaled 460,000, and the increase in defense
goods in the process of production was being
reflected in the unusually high inventories of
manufacturers. In the fiscal year ended June 30,
total defense spending was up an estimated
$1.3 billion in comparison with the level of
outlays projected in the President's budget in
January.
The slowing of economic expansion which
began late last year had a relatively mild impact upon personal income and employment.
Personal income continued to advance to new
highs during each month of the first half of
1967 and, for the period, grew at a rate of 5.8
percent, compared with 8.6 percent during
1966. Although consumers had begun to slow
the pace of their outlays in 1966, especially
purchases of durables, personal consumption
outlays in the first 6 months of the current
year expanded at a faster rate than personal
income, partly due to the reduced rate of personal tax payments. Thus, the increase in disWHOLESALE AND CONSUMER PRICES
1966
p~Prellmln8ry.
SOURCE: U.S. Dopartment
0'
1967
Comm.reo.
posable personal income - at a 7.0-percen t
rate over the 6 months - compared favorably
with that for the first half of 1966 and the
rate of personal savings held near the' advanced
level reached late last year.
Despite the decline in industrial output and
the slowdown in other areas of the economy,
employment remained relatively stable and at
a high level during the first half of 1967. payroll employment in June was up slightly compared with January, with continuing emploYment gains in government and services about
offsetting decreases in manufacturing and construction. Even though employment was maintained at a high and stable level, amounts of
overtime work and pay were reduced. Due
mainly to the large influx of workers in June,
the civilian labor force expanded slightly during
the 6 months. In June the unemployment rate
rose to 4.0 percent from the average rate of
3.7 percent that had prevailed during the first
5 months of the year. The May-June rise
stemmed mostly from unemployment among
adult women seeking seasonal work.
Although the overexpansionary and inflationary pressures of 1965-66 had begun to
6
subside by early 1967, most prices continued
to rise during the first half of the year. Successive monthly increases in consumer prices
after January raised the index in June to the
record level of 116.0 percent of the 1957-59
base - reflecting a rate of expansion of 2.7
percent, as compared with 4.1 percent during
January-June last year. As in other recent
years, prices of services continued to advance
sharply; however, prices of food declined.
Wholesale prices declined from January to
April, mainly in response to a sharp drop in
some agricultural prices and a slowing in the
rate of increase in industrial commodity prices.
In May and June, the total wholesale index
recovered to the January level, as prices of
farm products rose sharply while industrial
commodity prices were stable.
financial developments
Major domestic financial developments during the first half of 1967 included a stimulative
monetary policy, substantial changes in interest
rate levels, rapid increases in bank credit and
the money supply, and extraordinarily heavy
public offerings of new securities on the part of
corporate businesses and state and local governments. In the international area, the U.S.
balance of payments continued to deteriorate,
despite an improvement in the balance of trade.
The Federal Reserve System moved aggressively during the first 6 months of 1967 to
achieve an expansionary posture in monetary
policy. Easing actions were taken because of
t~e reduced rate of growth of the economy and
With a view to inhibiting the development of a
CUmulative decline in overall economic activity.
Federal Reserve holdings of U.S. Government
securities increased rapidly; reserve requirements on some time deposits were reduced in
March; and the discount rates of the Reserve
banks were lowered in April. Mainly as a result of these actions, the reserve position of
member banks improved sharply. This improvement was reflected in the decline in mem-
ber bank borrowings at the Reserve bankswith borrowings averaging $557 million in
December 1966 but $112 million in June
1967 - and in the rapid shift from average
net borrowed reserves of $165 million in December 1966 to net free reserves of $236 million in March 1967 and $257 million in June
1967.
The System, through open market operations, pursued an aggressive policy of adding to
its holdings of Government securities. Average
holdings increased in each month and were
$1. 9 billion higher in June 1967 than in December 1966. This sharp expansion is more
than twice the increase that occurred during
the comparable period a year ago, when monetary policy was moving in the direction of
restraint. As another step to increase the supply
of funds available to the banking system, the
Board of Governors on February 28, 1967, had
announced a reduction in reserve requirements
- from 4 percent to 3 percent - on savings
deposits and on other time deposits up to $5
RESERVE POSITION OF MEMBER BANKS
p· Prollmlnary.
SOURCE: Board of
Go~ornors.
Fed(lrll Reservo S) 5tem.
business review/august 1967
7
million. It is estimated that this reduction in
reserve requirements made available $850 million in reserves, $350 million at reserve city
banks and $500 million at country banks.
Early in April, the Board of Governors announced approval of the actions of the directors of each of the Federal Reserve banks in
lowering the discount rate from 41;2 percent
to 4 percent. These reductions followed declines
in open market rates and in the discount rates
of central banks in some other major countries.
At the time of the reduction in the discount
rate, both the yield on 3-month Treasury bills
and the Federal funds rate had retreated from
1 percentage point or more above the discount
rate to levels somewhat below the discount rate.
In the case of the other major central banks,
discount rate reductions had been announced
in Canada, Germany, and the United Kingdom.
Interest rates in both money and capital
markets decreased in early 1967. Although the
downward adjustment in rates was occasioned
by the easing of credit demands associated with
slowing in the pace of economic advance and
the development of less ebullient expectations,
SHORT·TERM RATES
PERCENT
EFFECTIVE RATE ON FEDERAL
1965
SOUR CE: Boa rd
8
1966
0' Gove rnors, Fodora l Rose rve
S~ sto m .
1967
LONG·TERM RATES
1966
1967
SOURCE : Boa rd of Govern ors. Foderal Res er ve Sy stom.
official monetary actions designed to increase
the supply and flow of funds provided the major
impetus for the decrease. In money markets,
the rate declines were markedly deeper and
more persistent than those which occurred in
capital markets. Short-term rates continued to
fall until May, while long-term market rateS
had reached lows for the period in February·
Following these declines, however, rates
moved upward, with market yields on longerterm instruments rising quite sharply and
reaching a point toward the end of June which
was within the range of the 1966 highs. The
cessation of the declines and the subsequent
upturn in both money and capital market rateS
reflected a number of factors, including heavY
demands for funds by corporations and state
and local governments, anticipations of a resurgence in the economy in the second half
of 1967 (including firming of monetary poliCY
and interest rates), and expectations of large
Treasury borrowings during the remainder of
the year.
The greater decline in money market rates
than in capital market rates created a large gap
between short- and long-term rates and shifted
the shape of the yield curve. At the end of
1966, the yield curve was downward sloping,
indicating a market expectation of lower rates,
but by April the curve was upward sloping, indicating a market expectation of higher interest
rates.
In the money market, the average yield on
3-month Treasury bills moved from 4.96 percent in December 1966 to 3.54 percent in June,
declining 142 basis points. During the latter
part of June, however, the market rate on such
bills rose and, by early July, reached a level
of 4.29 percent. Other money market rates also
fell substantially from December through May.
In terms of basis points, the declines were as
fOllows:
Commercial paper ............ 133
Finance company paper ....... 147
Bankers' acceptances .......... 133
The yields on these money market instruments
adjusted upward subsequently.
In capital markets, rates moved downward
?nly moderately and ceased their downtrend
In February.
Dec.
Issue
U.S. Government
bonds (long-term)
Aaa state and local
government bonds
Aaa corporate bonds
Feb.
1966
1967
4.65
4.47
3.79
5.39
3.38
5.03
These rates then adjusted upward quite substantially. During the last week in June, longterm U.S. Government issues showed an average yield of 4.95 percent; state and local gov~rnment issues, 3.85 percent; and corporate
ISSues, 5.56 percent.
credit occurred in loans (particularly commercial and industrial loans), the growth in the
first half of 1967 was centered in the securities
portfolios, especially in holdings of non-U.S.
Government securities. Of the $16.5 billion
advance in total bank credit (on a seasonally
adjusted basis) between December 1966 and
June 1967, only $7.1 billion, or 43 percent,
occurred in loans. In the first 6 months of 1967,
while holdings of U.S. Government securities
rose only by a seasonally adjusted $2.2 billion,
holdings of non-Governments increased $7.2
billion, thereby facilitating the continuation of
heavy bond sales on the part of state and local
governments.
It may be noted, also, that there apparently
were substantial changes in the growth of total
credit at the different categories of banks in
the first half of 1967. Loans at the larger banks
expanded very little in the first half, while loans
at the smaller banks grew quite rapidlymore rapidly, in fact, than in the first half of
1966. This differential in loan growth may be
the result of the use made of the market for
debt instruments by larger borrowers, who
usually deal with the larger banks, and the
unavailability of alternative sources of credit to
the smaller borrowers, who strongly affect loan
demand at the smaller banks.
The loan-deposit ratio at the Nation's commercial banks declined from 65.8 percent in
December 1966 to 65.1 percent in May 1967
but then rose to 66.0 percent in June. The decline from December through May was the
result of both the relatively modest increase in
loans and the rapid growth of deposits. In the
first half of 1966, the loan-deposit ratio rose
from 63.7 percent to 66.0 percent.
Bank credit increased rapidly in the first half
~: 1967, due mainly to the sharp expansion in
. e reserve base. Total bank credit at the NatlOn'
ad' s commercial banks rose at a seasonally
b lUsted annual rate of 10.6 percent in the
t ecember 1966-June 1967 period. In contrast
o 1966, when most of the growth in bank
While much of the reduction in the rate of
growth of loans at the commercial banks was
accounted for by business loans, each of the
other major categories of loans showed less
strength than in the same period last year. Business loans expanded a seasonally adjusted $4.5
business review/ august 1967
9
billion in the first 6 months of 1967; in the
comparable 1966 period, these loans rose $7.0
billion. Both consumer loans and real estate
loans also increased less rapidly in the first
half of 1967 than in the first half of 1966.
COMMERCIAL BANK LOANS
AND INVESTMENTS
(Ai of last Wedne sday of month )
cent, respectively, in the first 6 months of the
current year.
Time deposits adjusted (which exclude deposits due to domestic commercial banks and
the U.S. Government) expanded at a seasonally
adjusted annual rate of 17 percent between
December 1966 and June 1967. Much of this
increase reflects the success of banks in attracting funds through offerings of time certificates
of deposit. With the sharp decline in market
rates on competing instruments, bank offering
rates on CD's became increasingly attractive to
both corporate and other investors. After declining to a level of $15.4 billion during December 1966, the volume of large certificates of
deposit outstanding at weekly reporting commercial banks expanded to $19.3 billion during
June 1967.
Inflows of funds at the Nation's savings and
loan associations and mutual savings banks
were quite large in the first half of 1967. Net
savings inflows were an estimated $8.6 billion,
in striking contrast to the $2.9 billion increase
in the comparable 1966 period. ' The infloW
during the first 6 months of 1967 represents a
record growth for the period:
1965
1967
p· PrcliRlin a ry.
SOURCE : Bo a rd of Gov ernor s, Fodoral Ro , orvo $yuom .
Both the money supply and time and savings
deposits grew quite rapidly in the first half of
1967. It is estimated that, from December 1966
through June 1967, the money supply increased
at a seasonally adjusted annual rate of 7 percent. This growth is in sharp contrast to the
3.4-percent annual rate of rise in the period
from June 1960 to June 1966. The two components of the money supply, demand deposits
and currency and coin, expanded at seasonally
adjusted annual rates of 7 percent and 6 per-
10
Both corporate businesses and state and local
governments made heavy demands upon the
capital market in the first half of 1967. The
particularly heavy corporate demands for funds
may be attributed to the continued high level
of capital expenditures, the relatively low levels
of corporate liquidity, the desire to payoff
some short-term bank loans, and the anticipation of more stringent monetary conditions in
the second half of the year. Similarly, longterm security issues of state and local governments were an estimated 23 percent higher ill
the first half of 1967 than in the first half of
1966. While some had expected that the large
demand for funds would taper off after the first
quarter, the demand, in fact, continued thrOUg~
the second quarter, with a record volume 0
new corporate offerings in June.
Total corporate security offerings in the first
half of 1967 were an estimated $11.7 billion,
Or about 15 percent more than in the first half
of 1966. Of the $11.7 billion of new issues,
$10.8 billion was bonds and $0.9 billion was
stocks. Manufacturing businesses borrowed
about 45 percent of the new capital raised,
While public utilities and communications
firms accounted for 19 percent and 9 percent,
respectively. Of substantial importance in corporate bond financing in the first half of 1967
Was the switch in emphasis from private to
public placement. As a result, public new issues
Were $7.2 billion, or almost double the amount
in the previous year.
The volume of Treasury cash borrowing during the first half of 1967 was only slightly less
than that in the comparable period of last
year. A total of $3.9 billion in new funds was
raised by the Treasury during the J anuaryJune period, consisting of a $1.2 billion addition to regular bill offerings and a $2.7 billion
Offering of Tax Anticipation bills. In the first
half of last year, Treasury cash borrowing
totaled $4.0 billion. On June 29, the Treasury
MONEY SUPPLY AND TIME DEPOSITS
NEW DEBT ISSUES
.-Estlmated.
SOURCES ; Bo ard of Govornor s. Fed oral Re servo System.
Fodor. 1 Resorvo Bank of
Dill as.
announced plans for selling $6.2 billion of Tax
Anticipation bills and other short-term securities to raise some of the new funds needed
during fiscal 1968. In addition to its cash borrowing operations in the first half of 1967, the
Treasury refunded $11.2 billion of notes and
bonds and prerefunded $1.4 billion of certificates and notes.
balance of payments
Measured on either the liquidity basis or
the official reserve transactions basis, the Nation's balance of payments remained large in
the first quarter of 1967. While exports grew
more rapidly than imports (and, consequently,
the merchandise trade surplus rose to about
$4.0 billion, as compared with $2.9 billion in
the previous quarter), this gain was more than
offset by an increase in U.S. Government expenditures abroad and the decline in loan repayments by foreign countries.
P"Pre1Imlnary.
SOURCE : Board ot OO\lUrnOr l, Foderal Ro scrve Systom .
Measured on the liquidity basis - that is,
by changes in U.S. official reserve assets and
in U.S. liquid liabilities to all foreign residents
- the deficit was at a seasonally adjusted an-
business review/august 1967
11
u.s.
BALANCE OF PAYMENTS
I)· Proll mln nry.
SOUR CE : U,$. Dep ar tm en t o f Comm erco .
nual rate of $2.2 billion in the first quarter.
On this basis, the deficit was somewhat larger
than the $1.4 billion recorded for the year
1966 and the $1.7 billion deficit in the fourth
qu arter of 1966 but was less than the $2.6
billion deficit in the first quarter of 1966. Measured on the official reserve transactions basis
- that is, by changes in U.S. official reserve
assets and in liquid and nonliquid liabilities to
12
foreign official agencies only - the deficit increased sharply. However, the extraordinarilY
large official reserve transactions deficit reflected the transfer of funds from foreign private accounts to foreign official accounts, a
shift which reversed the movement in 1966.
Merchandise exports from the United States
(excluding military items) rose from a seasonally adjusted annual rate of $29.6 billion in
the fourth quarter of 1966 to $30.8 billion in
the first quarter of 1967. In the same period,
merchandise imports (excluding military items)
remained almost unchanged, increasing only
from $26.7 billion to $26.8 billion. As a result,
the export surplus on merchandise trade rose
about $1 .1 billion between the fourth quarter
of 1966 and the first quarter of 1967.
During the first quarter of 1967, U.S. official
reserve holdings declined slightly over $1 billion. This decline was heavily centered in the
holdings of foreign currencies. However, most
of the reduction was offset by a $700 million
fall in liquid liabilities to foreign private residents. In addition, the U.S. gold tranche
position in the International Monetary Fund
decreased $20 million, which is substantially
below other recent declines.
district highlights
In response to the Mideast crisis that resulted
in a curtailment of crude oil shipments to many
Western nations, production of crude oil in the
SOuthwest increased in June, and a further advance during July is certain. Daily average
Crude oil production in the Eleventh District
rose 1.2 percent during June and was 2 percent ahead of the same month last year. Among
producing areas in the District, east Texas
showed the largest monthly gain of 3.6 percent,
and west Texas was not far behind; production
in other areas in the District changed by lesser
amOunts.
Between January and May of this year, regulatory authorities had lowered the Texas allowable steadily as a result of a slackening demand
for crude oil and the consequent rise in petroleum inventories. When the war in the Middle
East erupted, the demand for American crude
oU rose, and the large inventories in the United
States and Europe became an asset. The allowable for July, permitting production at nearly
the highest level in Texas since the 1957 Suez
crisis, was set at 48 percent of permissible prodUCtion, or one-third higher than the June figUre; the allowable for August has been placed
at 54 percent. Louisiana has also raised its
Ulonthly allowables significantly. Production in
the Southwest will probably be maintained at
reCord levels during August. The expansion in
OUtput is not likely to be proportional to the
adVance in allowables, since many older wells
may not be able to increase their output significantly. Partially as a result of a threatened
crude oil shortage, two major producers and
~wo. smaller ones raised crude oil prices slightly
Urmg mid-July.
Total nonagricultural employment in the five
SOUthwestern states moved ahead to a level of
5,697,500 persons in June by increasing 0.8
percent, which is more than double the expected seasonal gain. The increases in both
manufacturing and nonmanufacturing employment were above seasonal anticipations. Employment performed better than seasonally expected in all nonmanufacturing categories except mining and construction; employment in
services was quite strong.
Nonagricultural employment in the five states
in June was slightly more than 4 percent over
the same month last year. The year-to-year
gain in manufacturing employment was under
the average for all employment, while the rise
in nonmanufacturing employment was just in
excess of the average. Nonmanufacturing employment was boosted above a year ago by
especially strong gains in service and government employment. The other increases clustered about the average gain for nonmanufacturing employment, but bOtll mining and construction employment fell below a year earlier.
In June the Texas industrial production index, seasonally adjusted, rose fractionally to
154.3 percent of its 1957-59 base. The monthto-month change for both durable goods manufactures and nondurable goods manufactures
was not appreciable. Durable goods production edged upward, but the output of nondurable goods slipped slightly. Among the durable
goods, electrical machinery registered the most
prominent output advance of nearly 5 percent.
Primary metal industries, with production down
nearly 3 percent from May, had the greatest
decline. Otherwise, the gains and losses within
the durable goods sector were moderate and
about evenly split. In the nondurable goods
sector, textile mill products showed the largest
production gain of almost 3 percent. There
business review/ august 1967
13
were more declines than gains within the sector; month-to-month losses approaching 3 percent occurred in three of the nondurable goods
industries.
cent greater than in the comparable period last
year. Cumulative sales thus far in 1967 were 3
percent larger than in the like period in 1966.
Mining output was up slightly more than 1
percent over May, with the advance accounted
for by increases in the production of metal,
stone, and earth minerals and of crude petroleum. There was virtually no change from the
prior month for the utilities category.
Both loans adjusted and investments and
total deposits increased at the weekly reporting commercial banks in the Eleventh District
in the first 6 months of 1967. The increase in
loans adjusted and total investments was heaVily influenced by the rapid growth in holdings
of non-U.S. Government securities at these
banks, while the increase in total deposits reflected the extremely rapid rate of gain of time
deposits.
The industrial production index for the State
in June was 4.5 percent ahead of the same
month last year; the output of durable goods
displayed a slightly greater than average increase, and nondurable goods production, a
slightly less than average gain. Transportation
equipment production showed the greatest increase in the durable goods sector - 15 percent. Output of stone, clay, and glass products,
dipping nearly 8 percent, showed the largest
decline. Other changes were more moderate,
with the gains and losses among the remaining
durables about equally divided. Within the
nondurable goods sector, the changes tended
to center around the average change for all
nondurable manufacturing. The year-to-year
gain in mining was about 3 percent, and the
major strength in this sector came from the
7-percent increase in natural gas. The output
of utilities advanced strongly over a year earlier, buoyed particularly by a 14-percent gain
in the production of electricity.
Registrations of new passenger automobiles
in four major Texas areas rose again in June
and established a new high for the month.
Combined registrations, totaling 19,710 in the
four markets (Dallas, Fort Worth, Houston,
and San Antonio), were up 2 percent over May
and 3 percent above June 1966. However,
cumulative registrations for the first half of
the year were 3 percent below those in 1966.
Department store sales in the Eleventh District in the 4 weeks ended July 22 were 4 per-
14
Loans adjusted rose $83 million in the first
half of this year, of which $33 million represented an increase in commercial and industrial
loans. In the first half of 1966, commercial
and industrial loans had expanded $73 million.
Total investments at the District's weekly reporting commercial banks rose $93 million in
the first 6 months of 1967, reflecting a $107
million gain in holdings of non-U.S. Government securities but a $14 million decline in
Government securities.
The increase of $53 million in total deposits
was accounted for entirely by the rise of $182
million in time and savings deposits, inasmucn
as total demand deposits fell $129 million. Tb e
growth in time and savings deposits, in turn,
reflected a gain of $139 million in negotiable
time certificates of deposit issued in denonl inations of $100,000 or more and a gain of $13 3
million in other time deposits (excluding the
large CD's); savings deposits declined $53 million. In the first half of 1966, large CD's issued
by these weekly reporting banks had expanded
$102 million.
Rains and showers have fallen over widely
scattered areas of the Eleventh District, and
soil moisture ranges from extremely short to
adequate. In areas where precipitation has not
been received, plants are under' stress, and
early harvesting has been prevalent. U.S. Department of Agriculture estimates of winter
Wheat production in the five southwestern
states, as of July 1, place output at 13 percent
below the 1966 harvest. Rice production, on
the other hand, is indicated to be 7 percent
higher than last year. Harvesting of earlier than
~sual crops of cotton, sorghum grain, and rice
IS making good progress.
Livestock in the District are in fair to good
~ondition, but increased supplemental feeding
IS
required in moisture-deficient areas. An un-
usually varied pattern of grazing conditions
exists because of divergent weather. Poor grazing and a shortage of stock water in some
areas have encouraged heavy culling of herds
and early marketings of young stock.
Prices received by Texas farmers and ranchers for all farm products during the first half
of 1967 were 10 percent lower than in the
same period a year earlier. Cash receipts from
farm marketings in the five District states during January-May were 14 percent below the
corresponding period last year.
The Chelmont State Bank, El Paso, Texas, located in the territory served by
the EI Paso Branch of the Federal Reserve Bank of Dallas, became a member
of the Federal Reserve System on Ju ly 24, 1967. The new member bank, which
was organized in 1960, has capital of $646,800, surplus of $646,800, undivided
profits of $398,800, and total resources of $17,682,500. The officers are:
H. D. Fulwiler, Chairman of the Board; A. C. Donell, President and Trust
Officer; G. G . Dalby, Senior Vice President and Assistant Trust Officer; Earl
L. Chambers, Vice President and Cashier; Stewart M. Pinkerton, Jr., Assistant
Vice President and Assistant Cashier; C. E. Stras, Comptroller; Mrs. Hollis
Brown, Assistant Cashier;' and Pete Jurado, Assistant Cashier.
business review/ august 1967
15
STATISTICAl! SUP.P.I!EMENli
to the
BUSINESS REVIEW
August 1967
FEDERAL RESERVE BANK
OF DALLAS
RESERVE POSIT IONS OF MEMBER BANKS
CONDITION STATISTICS OF WEEKLY REPORTING
COMMERCIAL BANKS
Eleventh Federal Reserve District
Eleventh Federal Reserve District
(Avorag e, of daily flgures. In thousands of dollars)
-=
(In thousonds of dollars)
Ite m
Jul y 26,
1967
June 28,
1967
July 27,
1966
ASSETS
Net loan s and discounts .... ..... .. ... .. ...... .
Valuation reserves ...........................
Gross loans and di scounts ............. .. •.....
5,125,639
95,736
5,221,375
5,254,942
95,520
5,350,462
4,963,699
92,143
5,055,842
Commercial and industrial loans•.......•.....
2,494,310
2,555,112
2,454,636r
103,493
102,359
84,339
18,761
42,189
7,753
45,737
4
42,152
871
320,625
814
324,447
1,131
319,043
172,036
278,776
492,171
156,395
4,153
530,199
186,525
284,659
491,439
240,317
4,171
527,330
160,974
258,894
467,775
128,566r
7,145
519,438r
Other loans ••.. •••.•.••••••.•. .••.•... •••
0
607,396
0
579,799
99
611,646r
Total investments •.. •. • . •.... .....•. . . . .•....
2,397,411
2,317,258
2,251,830r
Total U.S. Governm ent securities ..... .........
Treasury bill s.. . ..................•.....
Treasury certiflcates of indebtedness •.. .....
Treasury notes and U.S. Government
bond s maturing :
1,104,780
69,192
13,872
1,076,207
42,346
15,167
1,140,748
39,372
5,824
Agricultural loan s, excl uding CCC
certiflcates of interest ••••...•....••••..•.
loans to brokers and dealers for
purchasing or carrying:
U.S. Government securities ................
Oth er securities .........................
Other loans for purchasing or carrying :
U.S. Government securities ... ....... .. ....
Other se curiti es ...................... . ..
Loan s to nonbonk Anantial institution s:
Sales finance, personal flnance, factors,
and other business credit companies •••....
Other •••••. . .••••....••.• ..•..••••••..
Real estate loons .•........................
Loons to domestic commercial banks•.••.......
Loon s to foreign bonks ••. ... .. ...... ... . . , .
Consumer instalment loons •••...... ...... ....
Loans to foreign governments, offlcial
institutions, central bonks, international
institutions ..............•... . ..... ......
140,702
625,560
255,454
116,550
644,798
257,346
125,372
584,311
385,869
27,778
1,035,075
16,046
1,029,839
13,907
941, 168
Oth er a ssets ••. . .•... ...... • ......... ...... .
146,019
83,759
829,367
678,224
79,132
472,840
4,952
316,239
131,361
63,805
850,458
612,044
77,889
436,110
4,779
322,667
82,375
73,632r
771,423
556,520
78,187
443,529
4,979
312,785r
TOT AL ASSETS . . •. .•... ••••••. . .• •••• ••
9,903,804
9,876,147
9,382,952
Total depo si ts ••••..•.•••••..•••.....•.•••.•
8,460,209
8,416,524
8,080, 143
Total demand deposits ••••••..•.•••...•••••
5,106,287
3,536,382
276,169
136,138
1,059,130
5,055,661
3,410,831
289,421
118,436
1,122,503
4,868,180
3,374,935
320,859
129,827
950,214
Within 1 year ••••••.••••••••••..•.••.
1 year to 5 years .........•...........
After 5 years •• ••••.•. ••••• ••. •.•.••• •
Obligations of states and political subdivisions:
Ta x warrants and shorf·term note s and bill s ..
All other • •• •.• .••. •..•••.•.• . • . •• · • ··•·
Other bonds, corporat e stocks, and se curiti es:
Participa tion certiflcotes in federal
agency loons ..............•........ ·•
All ather (including corporate stocks) . . •• ... •
Cosh items in proc ess of coll ection .... ... .... .. .
Reserve s with fed e ral Reserve Bonk . •.• . ........
Currency and coin ..• ....... •. .... . .... . .....
Balances with banks in the Unite d States ... ..• ...
Balances with banks in foreign countries .....•.. .
Item
4,43 1
23,346
86,693
3,360,863
2,630
20,564
69,151
3,211,963
U.S. Governm ent (including postal savings) •••
8anks in the United States ••••.•.••..• •• .• •
1,114,147
1,646,665
555,703
12,929
22,978
1,134,251
1,602,409
591,637
10,955
20,111
1,209,316
1,425,484
551,486
5,902
17,235
foreign:
Gov ernm ents, offlcial in stitutions, central
banks, international institutions ....•..•.
Comm ercial banks ........ . . .• .. . ......
800
700
800
700
1,000
1,540
408,425
154,679
360,721
220,183
303,873
157,947
Bills pa yab le, rediscounts, and other
liabilities for borrowed monoy . .... ....... .. .
Other liabilities ••••••••••.••••.•••....•.•...
880,491
878,719
840,989
TOTAL LIA81L1TIES AND CAPITAL ACCOUNTS
9,903,80~
9,876,147
9,382,952
2
Revised.
5 weeks ended
July 6, 1966
642,204
595,825
46,379
638,464
3,740
0
3,740
636,101
590,200
45,901
631,521
4,580
14
4,566
606,521
563,126
43,395
600,887
5,634
23,100
- 17,466
632,219
475,775
156,444
595,182
37,037
3,828
33,209
625,930
471 ,500
154,430
592,958
32,972
4,054
28,918
612,723
468,622
144,101
584,867
27,856
10,728
17, 128
1,274,423
1,071,600
202,823
1,233,646
40,777
3,828
36,949
1,262,031
1,061,700
200,331
1,224,479
37,552
4,068
33,484
1,219,2 44
1,031,7 48
187,496
1,185,754
33,490
33,828
_338
Total reserves held ............
With federal Re ser ve Bank ...
Currency and coin ...........
Required reserves ............ .
Excess reserves .••............
Borrowing s...................
free reserves .... . ............
COUNTRY BANKS
Total reserves held .......... . .
With Fe deral Reserve Bonk ....
Currency and coin ......... ..
Re quired reserves . • ... . ..... ..
Excess reserves ... . •........• .
Borrowing s.................. .
Free reserves .................
ALL MEMBER BANKS
Total reserves held . .. ...... . ..
With Federal Re se rve Bank ....
Currency and coin ...........
Require d reserves ..•..........
Excess reserves . ... ..........•
Borrowings .... ... .......... .•
Free reserves .................
--
CO NDITI O N O F THE FEDERAL RESERVE BANK O F DALLAS
(1n thousonds of dollors)
================================~
July 26,
June 28,
j uly 27,
______________I_te_m
__________________1~9~6~
7 ______~1~96=7_______1~~
Total gold certiflcate rese rves . • •... •. .. . ....
Discounts for member bonks ..........•.....
Other discounts and advances •...........•.
U.S. Government se curitie s . • ...... . ........
Total e arning asse ts .••....... '" ......... .
Member bonk reserve deposits.. • .. ..... ....
f ederal Re se rve notes in actual circulation . . . ..
519,117
3,467
o
1,828,588
1,832,055
1,078,236
1,314,801
375,384
4,820
1,044
1,896,031
1,901,895
994,292
1,289,462
573,9~~
43,8 0
3
1,527,9~1
1 ,571.~ 51
955, 5
1,24 4,5 2
-------------------------------------~
CO ND ITIO N STATIST IC S O F A LL MEMBER BAN KS
(In millions of dollars)
~
Item
June 28,
1967
May 31,
1967
ASSETS
Loans and discounts. ...... . . ... ..... .. . .
U.S. Government obligations .. ... •..... •.
Other securities ....... .•.. .. . .... ......
Rese rves with Fe d eral Reserve Bonk . • ... • . .
Ca sh in vault ... . ...... . .............. .
Balences with banks in the United States •...
Balanc es with banks in foreign countries e . .. .
Ca sh items in proce ss of coll ection •.•... . ..
Other assets e ............. .••.• ........
9,096
2,237
2,42 1
994
229
1,063
7
963
50 1
TOT AL ASSETse •...•.. . ..... .••• •. • .
9,039
2,270
2,397
947
219
1,031
6
786
492
17, 187
LIABILITIES AND CAPITAL ACCOUNTS
Demond depo sits of bonks .............. .
CAPITAL ACCOUNTS •.•... • .••••• ••. .••...•.
r -
June 7, 1967
Eleventh Federal Reserve District
3,221
21,854
73,393
3,353,922
Total time and savings d eposits . •.....•. . ....
Individuals, partn ers hips, and corporations:
Savings depo sits ...............••.•...
Other time d eposits . . . .. .. . ........•...
States and political su bdivi sions ............
5 weeks ended
RESERVE CITY BANKS
LIABILITIES
Individuals, partn ers hips, and corporations....
State s and political subdivisi ons .......•....
U.S. Governm ent .. . ..... . ....•..........
Banks in the Unite d States . . ...............
foreig n:
Gover nm ents, offlciol institutions, central
bonks, International institutions • .. ... ...
Comm ercial banks ... .... ... •.... .. ... .
Certifle d and offlce rs' checks, etc ...........
-
4 weeks ended
July 5, 1967
Other demand deposits • •• •.. . ...• •.••. •.
Time deposits............ ..... .....•...
Toto I d e posits •••. • •... ....•. •.. ... •.
Borrowings ..•.. . ................. . .. . .
Oth er liab ilities e .•.... . ...... ....... ...
Total capital accounts e .. •... ..... ... ..•.
TOTAL LIABILITIES AND CAPITAL
ACCOUNTSe ... •. • •••••..•... . •.•.
e-
Estimated.
1,374
7,608
6,354
1,246
7,561
6,345
15,336
372
299
1,504
15,152
296
245
1,494
17,187
June 29,
~
865 6
2'29 1
2'1 40
'902
216
986
6
872
357
~
1 212
7'53 8
5: 693
1;4:43
'3 A5
21 8
I ,A2 0
--JM11
~
BANK DEBITS, END-OF-MONTH DEPOSITS, AND DEPOSIT TURNOVER
(Dollar amounts in thousands, seasonally adjusted)
DEB ITS TO DEM AND DEPOSIT ACCOUNTS'
DEMA ND DEPOSITS'
Percent chang e
-
6 month s,
(Annual - rote
St a nd a rd metropolitan
basis)
statistical area
Texarkana (Texas· Arkansas} .. . . .. .. ........... .
Tyl.r .................... .. . ....... .. .......
Waco . . ... ... . . . .. . .... ... ... ..... . ...... ..
Wichita Falls •• ••••••• ..••••. .• • •• , .•• •... •..
4, 158,444
2,0 11 ,908
5,889,384
611,796
1,746,012
4,310,556
4,68 8,856
5,557,608
1,3 60,284
3.907,896
366.696
70,408,932
5.277.684
14,702.676
2.240.352
70.010,086
658,380
3,572.868
1,320,432
1,584,684
1,248,072
907.920
11 ,737,308
1,297,320
1,597,944
2.32 1.832
1,845,732
Tatal_27 c.nt.rs • .• •••• .. •• .•••...• •• . •.• .. ••• ...• •
$225,34 1,662
ARIZONA, Tucson •••.•.•.... . .••.•. . .•.••.•..••••.••
LOUISIANA, Monro ....... ..... .... .. .............. .
Shre veport .................... . . .. ..... .
NEW MEX ICO , Roswell' ••. . •••• •...•.•... •.• . . . ••...
TEXAS, Abil. n•.• . •...... •••... • ••...•• •. ..•.... •..
Amarillo . • . • . . ....•.•.• ...•••• ••.•.•. •. •••· •
Austin .. . •.. .... .. . ..... . . ................ · .
Beaumont- Port Arthur-Orang e • •.•. ... ...•.... . .
Brownsville- Harling en-Son Benito .... .... . .......
Corpus Christi .. ... ... ..... ... . ............. ..
Corslcana 2 •• • ••••••• • ••••••••••••.••••••• • • •
Dalla s ••.... •.•••.• . •••.••• •.... ...... . • • . · .
EI Paso ••.••••........ .. .••.•. . •.. • •••..•.•.
Fort Wo rth .. ......... .. . ..... ...............
Galveston-Texa s City . .. .................. . ...
Houston • • .. ••. ...••.•.•••••..• •••.. . , .• •.•.
lare do .. . . ... ... ... .. .. ... . ..... . .. .. ......
Lubbock ................................. ·· .
McAII. n·Phorr·Edin burg .. ......... .. ......... . .
Midland ..•..• ••• . •• ..•••.•••..•..•.••.. ·· • .
Od essa ........ . . ...........................
~~~ ~~f!,~i~:: :::::: :::: ::::: :::: :::::: :: ::: :
--
Annual ra te
of turnover
Jun. 1967 from
June
1967
May
1967
1966
-3
2
-2
-4
- 6
-4
3
1
0
-2
-10
5
1
-2
6
9
1
-5
-4
-3
5
5
-2
1
2
13
-5
June
1967 from
1966
June 30,
Jun e
1967
1967
May
1967
1966
14
6
12
-4
-7
6
9
4
12
4
5
11
7
9
18
12
26
0
15
-2
-7
2
4
25
1
15
- 6
10
5
13
-2
0
0
11
6
1
5
8
11
9
7
10
10
14
-3
13
- 1
-5
1
2
21
1
5
- 8
161 ,835
7 1,857
216,819
37,795
94,919
136,744
211,475
218,335
62,591
201.058
29,449
1,753,474
189,729
5 11 .358
93,704
2,059,7 17
31,949
14 5,237
79.830
120.399
63,093
56,163
526,718
56.958
83,425
109,209
104,776
25.5
27. 1
27.0
16.9
18.2
31.3
22.3
25.6
22.0
20.0
12.7
40.4
27.2
29.2
24.0
34.4
20.6
25.0
17.1
13.1
19.8
16.2
22.5
22.2
19.2
21.0
17.2
26.0
26.2
26.5
18.7
19.3
32.2
23.3
25.4
22.6
21.8
14.2
38.9
26.3
30.3
23.3
32.2
21.1
26.9
18.6
13.5
18.6
15.7
23.2
22.3
19.3
18.8
17.8
22.5
26.8
25.6
18.8
20.2
29.0
22.3
25.9
21.4
21.3
12.2
38.8
25.6
27.3
21. 1
32.2
17.8
24.2
15.5
14.0
21.1
16.2
22.2
19.6
19.0
19.1
18. 1
10
9
$7,428,6 16
30.5
29.8
29.1
Jun e
~ Deposits of indi vid ual s, partnerships, and corpora tion s and of statos and politi cal subdi vis ion s.
County basis .
.
NOTE. _
Figures (or 1966 have bee n revised du e to the use of new sea sonal ad lustm ent foctors.
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
El eventh Federal Reserve District
(Ave rag es of daily figures. In millions of dolla rs )
GROSS DEMAND DEPOSITS
BUILDING PERMITS
~
VALUATION (Do/lor amounts in thousand s)
Percen t change
Jun. 1967
from
NUMBER
~e a
ARIZONA
Tocson
LOUISIA~~"'" •
MQnro e~ West
S Monroe
hrevoport' " .
TEXAS
Abilen.
Arnarill~ "'" .
Aostin .. :·· · · .
Beaomont' . " ,
~rownsvlII ~' " .
D~lros Chrilti'. :
EI pa s........
Fart
Garth
....
HalvQston
Oosto
... "
Lar • n •• • .. •
do
Lubbock' '" ..
Midl
•••. . .
an
Od e"ad ... " .
Port A .... ...
Sa
rtho r, .. ,
So n Ang elo •.•
l' n Antonio
W~~~kana. : : :
°¥; .......
WiChit~' F~il; : :
-------= "
Total
-24 citi es
Jun e
1967
642
84
440
52
148
372
153
68
446
1.986
480
713
11 5
2.229
27
152
83
87
83
62
1,363
48
490
91
10,41 4
6 mos.
1967
3,352
Jun e
1967
$
2.709
6 mos.
1967
May
1967
Jun e
1966
$ 12,57 1
35
-52
-8
54
451
2,526
12,817
107
284
2, 105
4,843
14,252
127
34
0
7,299 -85
28
12,01 2
68,755 -44
20
7,6 17
8
1,111
164
17.2 12
66
10 1,433
12
31,332
34.291 -12
-69
4,674
39
180,492
3
2,099
16.308 - 13
6,060 -40
3,375 - 17
2.181 - 39
425
6.223
-2
55,698
55
2,166
6,834 - 66
-7
9.356
-68
-70
3
_ 14
-69
99
42
68
-30
-33
64
2
16
46
-72
-45
648
23
-2 1
-2 1
444
- 14
-38
60
- 13
-50
-7
-5
7
22
11
2
61
-45
-43
-59
-30
39
5
-57
6
25
20
28
320
872
2,2 81
873
377
2.269
11.612
2,865
3.815
611
12,528
195
82 1
503
597
482
427
7,316
254
1,745
447
57, 118
267
1.658
7,488
1.338
167
5,33 4
25,134
5,732
4,062
656
38,780
315
2.03 1
1,05 9
558
194
3,560
9,448
447
946
2,8 10
$ 122,062
$616,168
Country
TIME DEPOSITS
Reser ve
Country
Dote
Total
city banks
ban ks
Total
cit y banks
banks
1965, Jun •..•• .•
1966, Jun • •. ..••
1967, Januar y .••
8,596
8,742
9,352
8,902
8,951
9,140
8,833
8,968
4,163
4.080
4.226
4,020
4.106
4,245
4,089
4,197
4,433
4,662
5,1 26
4,882
4.845
4.895
4,744
4,77 1
5,104
5.704
5,934
6,091
6,183
6,231
6,261
6,282
2,455
2,667
2,645
2,72 1
2,738
2,723
2.716
2,707
2,649
3,037
3.289
3,370
3,445
3,508
3,545
3,575
February .. .
6 months,
1967 from
1966
Reserve
March .....
April ..... .
Ma y ......
Jun e ......
VALUE OF CONSTRUCTION CONTRACTS
(In million s of dolla rs )
Janoa ry-June
Area and type
June
1967
May
1967
Aprit
1967
1967
1966
FIVE SOUTHW ESTERN
STATES' ....... . ... . ....
R.sid. ntiol building • ......
Nonreside ntial building , . , ,
Nonbuildlng construction, , ,
UNITED STATES .... ........
Resi dential building. , , .. . ,
Nonresidential building ....
Nonbuilding construction . ..
583
198
219
166
5,414
2,000
2,070
1,344
519
208
138
171
5,095
2,002
I, B08
1,2 85
522
17 1
248
103
4,389
1,627
1,830
931
2,822
991
1.050
782
25,301
9,160
9,936
6.205
2.638
1,089
835
7 14
26,674r
IO,547r
9,827
6,299
] Arizona, lou is iana , New Mexico, Oklaho ma, and Texas .
r - Revised.
NOTE . - Detail s may not add to totals because of rounding.
SOURCE, F. W. Dodg. Company .
3
CROP PRODUCTION
CROP ACREAGE
(In Ihousands of bushels)
(In thousands of acres )
TEXAS
1967,
1967,
Harvested
Average
estimated
Average
For
Crop
Jul y 1
1966
1961·65
July 1
1966
1961·65
harvest
Winter wheat . . ••
Corn •...... ....
54,879
17,056
6,644
1,178
23,876
2,912
150
4,329
702
72,652
19,008
17,640
2,750
21,210
3,585
712
4,451
780
63,065
26,305
19,488
4,968
17,524
2,878
921
' 2,952
' 1,012
155,475
24,802
11 ,461
17,066
45,346
7,999
150
7,714
4,798
178,516
26,593
24,368
20,984
42,398
8,844
712
7,977
4,871
167,575
37,720
28,523
26,390
33,722
7,808
921
' 5,841
' 5,732
estimated
Ools ...........
Barley • ••• •••• •
Rice' ..... .....
Ha y' ...........
Flaxseed ..... ..
Irish potatoes· .. .
Sweet pototoes 4,.
In thousands of hundredwe ight.
harve st
---
Average
1967
1966
1961 ·65
1967
1966
1961 ·65
Cotton ... • ....... . . . .
Winter wheat . •••. .. •..
Corn •. .... .•..• ......
4,050
3,326
533
302
62
25
508
7,527
2,4 16
292
25
30
4,265
3,229
528
630
125
32
50S
6,22 1
2,221
295
89
29
12
6,460
3,119
860
779
234
27
451
5,993
2,127
287
99
'2 1
' 14
5,228
8,877
754
455
430
68
1,073
9,254
4,928
424
25
46
62
5,476
8,154
752
83 1
611
87
1,070
7,672
4,747
427
89
47
64
8,239
7,583
1,216
1,099
868
93
951
7,433
Oals •• •.• ••• •.•.•••••
Barley . ... ... .. ..... .
Rye ..................
Rice •• .. ... . . . '" . .. .
Sorghums • . .....•.. . . .
Hay ••.•••.•.•. ••• .••
• Data for 1965 are provided Instead 01 the S·year (1961.65) averago .
SOURCE, U.S. Department of Agriculture.
Harvested
For
Ave rage
Crop
Peanuts . .. ••...•... ..
Flaxseed • .. . •... . . . ..
Irish potatoes ••..•.. . • .
Sweet potatoes . •..••• •
Arizona, loui siana, N e w Mexi co, Oklahoma, and Texas.
In thou sands of bogs containing 100 pounds each.
;} In thou sand s of ton s.
1
~
4
-=
FIVE SOUTHWESTERN STATES'
TEXAS
FIVE SOUTHWESTERN STATES'
1
11
4,~~~
99
' 39
' 69
--
Arizona, loui sia na, N ew M ex ico, Oklahoma, and Texa s.
" Data for 1965 are provided instead of the 5.year (1961 .65)
SOURCE , U.S. Departm ent of Agricu ltu re .
ave rag e.
DAILY AVERAGE PRODUCTION OF CRUDE OIL
(In Ihousands of barrels)
Percent change from
Area
1967p
May
1967p
ELEVENTH DiSTRiCT ••••••• •
3,500.6
3,022.0
566.8
1,391.9
129.9
96.7
836.7
309.9
168.7
5,032.0
8,532 .6
3,460.0
2,982.4
561.6
1,354.3
125.4
95.4
845.8
308.9
168.7
4,996.0
8,456.0
June
Tex a s .. • .. ...... .... .•.
Gulf Coast •••. •• •• •• ••
West Texas . . ... ..... .
East Texa s (proper) •••••
Panhandle •• ••.•••••••
Rest of State ..........
Southeaste rn New Mexico ..
North ern Louisiana ... .... .
OUTSIDE ELEVENTH DISTRICT
UNITED STATES ............
p -
Jun e
1966
May
1967
3,431.5
2,978.7
553.5
1,397.3
127.2
95.5
805.2
306.6
146.2
4,951.9
8,383.4
1.2
1.3
.9
2.8
3.6
1.4
-1.1
.3
.0
.7
.9
CASH RECEIPTS FROM FARM MARKETINGS
June
1966
2.0
1.5
2.4
- .4
2. 1
1.3
3.9
1.1
15.4
1.6
1.8
(Dollar amounts
in
thousands)
==========================================~~~~
January-May
Percent
1967
Area
Texas ..•.•......... . .. ... . .
186,978
142,994
70,933
275,624
817,317
Total .. ...................
Unite d States . .. •• • . . . •• . • •
$ 1,493,846
$ 14,836,313
Arizona •..• . . •.• ... • .. . ....
louisiana . .. .... . . .. . ....•..
New Mexico .. . . . . .. .... . ... ·
$
Oklahoma ••• ••..•.••• ••••..
cha~
1966
$
215,493
136,586
76,024
304,537
997,977
_13
5
_7
_10
_18
$ 1,730,6 17
$15,270,398
_14
_3
-------------------------------------------~
SOURCE , U.S . Department of Agriculture.
Preliminary.
SOURCES , Ame ri can Petrole um Institute .
U.S. Bureau of Mines.
Federal Rose rve Bank of Dallas.
NONAGRICULTURAL EMPLOYMENT
INDUSTRIAL PRODUCTION
Five Southwestern States 1
(Sea sonally adjusted indexes, 1957·59
= 100)
Percent change
Numb e r of persons
1967p
May
1967
1966r
5,697,500
1,039,300
4,658,200
235,100
382,600
5,649,900
1,023,400
4,626,600
231,400
375,600
440,300
1,325,100
281,600
852,900
1, 140,600
432,300
1,3 13,200
277,800
842,000
1,154,200
Jun e
Typ e of employment
Total nonagricultural
wag e and salary workers ..
Manufacturing • ..... ..•..
Nonmanufacturing .•..•• ..
Mining .. . •.. ....•.•..
Construction •...•.. .. .•
Transportation and
public utiliti es ••• . ...•
Trad e ••.•••.• ••• •• •••
Financ e . •••. ... .• .....
Service .......•.. . ....
Government •.........•
June 1967 from
May
1967
1966
5,452,000
1,004,200
4,447,800
239,100
387,500
0.8
1.6
.7
1.6
1.9
4.5
3.5
4.7
-1.7
-1.3
419,300
1,265,200
268,400
803,600
1,064,700
1.9
.9
1.4
1.3
-1.2
5.0
4.7
4.9
0.1
7.1
June
Arizona, louis iana, N ew Me xico, O klahoma, and Te xas.
p Pre liminary.
r Rev is ed.
1
SOURCE , State employment agencios.
..
June
Area and type of index
June
TEXAS
Total industrial production •• •.. .
Manufacturing . ....... . .. .• . ...
Durable • ••••••. • •..••• ••••••
Nondurable ..... .............
Mining . ••.. .• .. . .. ......• ·· ..
Utiliti es •. ..• ..... • ............
UNITED STATES
Total industria l production . . ....
Manufacturing . .... . .. .. ... ... .
Durable •••••• .. ••• .•••••••••
Nondurable . . . . . .. ...........
Mining ••.. • ..... . .• . .•..... . .
Utilities •. ...•••... . ........ .. .
p -
r -
1967p
153.5
171.2
189.2
159.2
147.7'
164.7 r
180.7'
153.9'
116.0
184.1
156.5
158. 9
165 ..4,
150.7
122. 0
171.7'
205.3
151.3
170.4
188.4
158.4
112.6
209.9
155.2
156.7
161.6
150.5
123 .1
181.5
155.5
157.2
162.3
150.8
120.7
181.0
156.2r
158.0r
162.6r
152.3r
12 2.8r
179.5
118.2
Pre liminary,
Rev ised.
Board of Gove rnors of the Fede ral Rese rve System.
Fodoral Reserve 8ank of Dallas .
June
April
1967
154.3
17 1.7
190.8
159.0
119.6
205.5
SOURCES ,
~
May
1967
1966
~
-------
@FedFRASER